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Renter pays landlord but landlord uses money for other purposes?

If you are renting from someone and they do not Use the money you give them towards paying off the house and it gets foreclosed on because they stopped making payments are there any legal actions the renter can take?

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  • 10 years ago
    Favorite Answer

    Check out the link below in the sources!

    P.S. ignore the slum lords and ignorant people who are putting a thumbs down on all the answers that are actually helpful. Their answers state that there is nothing you can do (wrong!)

    This happened to my boyfriend 3 years ago. He found foreclosure notices in the mail (it was a multi unit property) so he decided to call the landlord but he denied it. When another foreclosure notice was found my boyfriend called the landlord again, but this time my boyfriend said he wasn't paying rent. That's when the land lord confessed. The bank eventually took the house and my boyfriend had free rent for a month. There was a company called cash for keys who came and basically paid him to hand over his keys and move out.

    In your case, you may be able to sue them, especially if you have a contract, but if they've let their house foreclose, there may not be anything to get from them. Because who knows, they might file bankruptcy. But I would reread the contract, if it was stated you'd be renting the place for a year, and he forecloses after 6 months, you MAY be entitled to the last 6 months rent because you had signed a contract stating you'd have somewhere to live for a year and you're being displaced because of their irresponsibility. I'm no lawyer and I'm not

    familiar with all renters rights but, I know for a fact that renters have rights for a reason, and this is one of them. look up the renters rights in your city/state and it should mention something on foreclosures. If not, I would say call your local city rep and ask them. I wish you luck!

    Source(s): http://homeguides.sfgate.com/renters-rights-forecl... this has some information pertaining to forclosures and tenants rights. YOU CAN SUE YOUR LANDLORD THAT FORCLOSED if they are in violation of your contract( in most contracts there is a clause dealing about satisfaction or inconvenience...something of that matter)
  • Anonymous
    10 years ago

    As others have stated, no, you have no recourse.

    You have been paying for a service, and have been receiving that service (a roof over your head).

    Unless you are not receiving the service you are paying for, you have not be wronged in any way and have no legal action to take, other than to continue paying rent until you are no longer living there.

    Tenants do have rights in the event of a foreclosure, but it is unlikely you will still be around when that happens, as foreclosures take years to finalize. Simply give proper notice at the end of your lease and move. Or, if you do not have a lease, give notice today and move out accordingly.

    You seem to be personally offended that your landlord didn't pay HIS mortgage. Wouldn't you be upset if your employer stopped paying you because you weren't using it to pay off your car? It's none of his business what you do with your money, just as it's none of your business what your landlord does with his money.

  • Anonymous
    10 years ago

    NO!! There is no legal action for the tenant to take because the landlord has NOT broken any laws. No landlord is ever legally required to pay the mortgage with the rent money. What the landlord does with the rent once it is handed over is none of the tenant's business.

    Source(s): I'm a property manager.
  • 10 years ago

    None whatsoever. Your obligation is to pay the rent upon which you have agreed. The landlord can do as he wishes with such monies. If he does not pay the mortgage payments, the property will go to foreclosure eventually. Renters have certain rights when their rented premises face foreclosure. Contact your local authorities for those rights.

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  • R P
    Lv 7
    10 years ago

    No.

    Your lease has nothing to do with the owner's mortgage. You can only sue if you suffered a loss, which you did not. You were paying for a house to stay in and you received that value for your money.

    What the landlord does with your rent money is none of your business.

    Source(s): FL landlord
  • 10 years ago

    yes, it sucks, but there isn't any legal action that can be taken. Why, because you have no damages. You paid your rent and in returned received what was promised - a place to live for that month. The next month you paid and you received what you paid for, etc, etc.

    You paying him rent and him not paying and keeping the money are 2 totally seperate things. Yes, I understand that you think it's unfair, but you really are due nothing since you got what you paid for.

  • LILL
    Lv 7
    10 years ago

    No. What the landlord does with the rent money is none of the tenants business.

  • 10 years ago

    No. You have no say in how they use their money. They can go home and wipe thier butt with it if they feel like it. You got use of the premises, THat is what you were paying for.

  • 10 years ago

    legal action for what? Did they have some contract with you agreeing to spend their income in some specific manner?

    You have no loss at all, you have nothing to sue over.

  • 10 years ago

    Sorry but NO. What someone does with their money is their business and not yours.

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